Silicon Valley Billionaire: We Are In A Massive Government Bubble

Sillicon Valley billionaire Peter Thiel recently argued on CNBC that “we are in a government bubble of massive size.”

He also said that the bond market is the most distorted of all the markets, saying specifically that:

“I think the thing that is most distorted is the bond market and fixed income, and perhaps less on the equity side, but we certainly are back on a government bubble of massive size.”

He also spoke a good deal about the tech industry.

He argued that tech stocks are overvalued, but that is only part of the story according to Thiel: “They’re somewhat overvalued but that’s not the core of the insanity. Tech investors always overrate growth and always underrate durability. You can measure growth but you can’t measure durability.”

Thiel, a PayPal co-founder, also addressed the recent parting of ways between eBay and PayPal, saying: “It makes sense for them to naturally spin it out again and for PayPal to focus 100 percent on payments.”

Thiel spoke about bitcoin, saying: “I think it’s worked on the level of a currency, where it’s a speculation on the level of a currency, but it’s not yet worked on the level of a payments system, and you need to get the payments system to work, not just for illegal payments but for legal payments.”

Is Thiel right? Are we really suffering the effects of a massive government financial bubble?